USDA released its monthly Dairy Products report on April 3, summarizing February 2014 production estimates. More milk went into the dryer during the month, with nonfat dry milk (human consumption) estimated at 141 million lbs., up 2.3% from the same month a year earlier.

Total cheese output (excluding cottage cheese) was 851 million lbs. in February 2014, 10.7% less than January 2014 and 0.6% less than February 2013. Y-T-D production stands at 1.8 billion lbs., down about 0.7% from the same period a year ago.

Butter production was 166 million lbs., 9.1% less than January 2014 and down 4.6% from February 2013. Y-T-D production stands at 348 million lbs., down about 3.8% from the same period a year ago.

The March FAO Dairy Price Index dropped 2.5% from February. Demand for all dairy products has been affected by reduced purchases by China and uncertainty over trade with the Russian Federation. Additionally, an extended season in New Zealand and a good start to the dairy year in the northern hemisphere have meant that export supplies have increased. The dairy commodity subject to the sharpest price drop was whole milk powder, reflecting reduced buying interest from China, in particular.

Overall, the FAO Food Price Index was up 2.3% from February and the highest level since May 2013. Sugar and vegetable oils rose by 7.9% and 4.5%, respectively, with cereals up 5.2% to the highest level since August 2013.

Pennsylvania March IOFC improves

Penn State University’s measure of income over feed costs (IOFC) rose 1.9% in March, according to the latest Dairy Outlook report from economist Jim Dunn. At $12.06/cow/day, the March IOFC is up 22¢/day from February, and the highest value since calculations began in January 2000.

IOFC reflects daily gross milk income less feed costs for an average cow producing 65 lbs. of milk per day. Although both Pennsylvania milk and feed prices rose in March, the milk price increase more than offset a 3.3% gain in feed prices.

The average cost to feed a cow producing 65 lbs. of milk per day was $5.16/day, up 16¢ from February, but 90¢ less than March 2013.

The March 2014 Pennsylvania all-milk price of $26.50/cwt. is the highest on record, up 60¢ from February and up $5.80/cwt. from March 2013.

Measured another way, feed costs per hundredweight of milk produced averaged $7.94/cwt. in March, up 26¢ from February. With the higher milk price, the milk margin over feed costs was $18.56/cwt., up 34¢/cwt. from February 2014 and up $7.19/cwt. from March 2013.

Dunn’s forecast of the average 2014 Pennsylvania all-milk price is $24.19/cwt., which would be up $2.70 (12.6%) from 2013’s estimated price of $21.48/cwt.

Just in time for the 2014 MLB Season, Prairie Farms Dairy and the Chicago White Sox have partnered to create a 3-lb., 12- scoop banana split sundae served in a full-size White Sox batting helmet.

The sundae’s foundation is four scoops each of Prairie Farms vanilla, chocolate and strawberry ice cream. It’s drizzled with caramel, strawberry sauce and chocolate syrup and includes two bananas, whipped cream and cherries. The super-sized sundae will be sold at concession stands throughout the ballpark.

In addition to soft serve and hard-pack ice cream, Prairie Farms single-serve milk and ice cream novelties, including new Moon Pie and UFO sandwiches, are available at restaurants, concession stands and food carts throughout U.S. Cellular Field during White Sox games.

The Wisconsin Milk Marketing Board (WMMB) is kicking off April, National Grilled Cheese Month, with the launch of their third annual Grilled Cheese Recipe Showdown contest. The contest, which ends May 12, includes a $10,000 grand prize.

The contest invites grilled cheese fans to submit original recipes featuring at least one Wisconsin Cheese, along with photos. Recipes will be judged by a panel of professional food bloggers, including Grilled Cheese Social, Foodie Crush, and bell’alimento.

WMMB’s Grilled Cheese Academy website was recently updated with an expanded recipe gallery. For more information, or to enter the contest, visit www.GrilledCheeseAcademy.com.

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About the Author:

Dave Natzke

Dave Natzke joined Dairy Herd Management as Editor in January 2014, bringing decades of dairy industry knowledge and experience. Raised on a northeast Wisconsin dairy farm, he previously served as editor/editorial director for another national dairy publication, as well as managing editor for two weekly agricultural newspapers in Wisconsin, adding up to more than 35 years of experience covering agriculture and the dairy industry. As DHM editor, Natzke oversees editorial content for both print and web, supervises full-time and freelance editorial staff, and provides strategic direction. He is based in Wisconsin Rapids, Wis.